Share market Highlights: Sensex ends 52 pts lower; Nifty above 10,950; Yes Bank up 4%

Oil dipped below $55 a barrel in London after the U.S. Federal Reserve raised interest rates, stoking fears over economic growth at a time when investors face a supply glut. Brent crude futures slid as much as 4.5 percent to the lowest since September 2017. Traders are avoiding risk assets as Chairman Jerome Powell failed to quell concerns the Fed’s policy will choke global growth. Meanwhile, inventories at a key U.S. storage hub rose to the highest level since January, adding to speculation output cuts by OPEC will be undermined by shale supplies.

Also read: Brent crude below $55 a barrel as Fed hike heightens demand-growth fears; lowest since September 2017

Shares of tyre companies Thursday surged up to 7 per cent in intraday trade amid reports that the GST Council is likely to slash tax rates on automobile tyres to 18 per cent from 28 per cent, currently, in its next meeting Saturday. On the BSE, JK Tyres gained the most as it was trading 7.52 per cent higher at Rs 110.70, while Apollo Tyres gained 2.25 per cent to Rs 244.90. TVS Srichakra gained 3.47 per cent to Rs 2,628.60. MRF rose 0.92 per cent to Rs 69,883.55 and Ceat advanced 2.14 per cent to Rs 1,373. The move is part of the government’s overall plan to rationalise the highest tax bracket of 28 per cent after Prime Minister Narendra Modi Tuesday said that 99 per cent of over 1,200 goods and services will attract 18 per cent or less Goods and Services Tax (GST).

Read full story here: Tyre stocks rally up to 7 percent on likely tax cut by GST Council

The government of Prime Minister Naredra Modi sought Parliament’s approval for an equity infusion of 23 billion rupees ($330 million) in Air India, effectively ruling out an immediate revival of its plan to sell the ailing carrier. Modi’s bid to turn the airline profitable under his watch comes after the government failed to find any takers for its ambitious plan to privatize the national airline. Air India, which was offered along with $5 billion of its debt, is surviving on taxpayer bailouts after losing money for years. The failed attempt to sell Air India — Modi’s most high-profile privatization plan — was a setback for prime minister’s effort to cement his credentials as a reformist steering the state away from running businesses ahead of an election due next year. The airline, which has $8 billion debt on its book, hasn’t made money in more than a decade.

Also read: Modi govt seeks to pump Rs 2,300 crore more into Air India after failed disinvestment bid

Fresh trouble has mounted for Reliance Communications (RCom), hanging its spectrum sale deal with Jio in the balance as Mukesh Ambani has refused to pay dues of younger brother Anil Ambani’s telco dues. The Department of Telecom (DoT) has maintained the stance that the deal cannot be cleared unless it gets clarity on payment of dues and associated charges, PTI reported quoting sources. RCom owes the DoT about Rs 2,900 crore. Earlier this month, RCom had given a corporate guarantee of Rs 1,400 crore to the DoT after an order by the Supreme Court. Now with Mukesh Ambani’s Jio refusing to take any payment liability, the DoT sources told the news agnecy that under the present circumstances where none of the parties — RCom or Jio — are taking responsibility of payment of dues, the deal cannot be taken on the record.

Red full story here: Fresh trouble for RCom! Mukesh Ambani refuses to pay dues of Anil Ambani’s telco

After trading lower on Thursday morning, the Sensex and Nifty-- have made a mild recovery. Sensex is off day's lows, and has recovered about 185 points to 36,387.26, while the Nifty 50 is trading above the 10,900-mark. Yes Bank share price gained by more than 4% after the firm announced that it has sold over 2% stake in Fortis Healthcare Ltd (FHL) in tranches. A look at Live heatmap.

Homegrown consumer goods maker Patanjali Ayurved plans to go global soon, said co-founder Baba Ramdev on Wednesday at an event in Mumbai. The FMCG major has already taken a global leap and it would enter global markets after March next year, he said. The Chinese government has offered the firm 10,000-acre land along with monetary support to begin operations, he informed. The global FMCGs have not been able to make a mark in terms of manufacturing natural products, he also expressed. Since India is home to over 4 lakh herbs, and research on 60,000 has been done by us, Patanjali can do very well globally, the yoga-guru also said.         

Also read: Patanjali’s global leap: Baba Ramdev tells how homegrown consumer goods maker plans to tap Chinese market

Britain risks slipping from being the world’s fifth-biggest economy to its seventh-largest next year, when it is due to leave the European Union, with France and India on course to overtake it, accountancy firm PwC said. PwC projected economic growth in 2019 of 1.6% for Britain — assuming the country manages to avoid the shock of a no-deal Brexit in March — versus 1.7% for France and 7.6% for India. “The UK and France have regularly alternated in having the larger economy, but subdued growth in the UK in 2018 and again in 2019 is likely to tip the balance in France’s favour,” PwC economist Mike Jakeman said.

Also read: India to become fifth-biggest economy in 2019, says study

Shares of India's major telecom player Bharti Airtel plunged in trade on Thursday morning, ahead of the firm's board meeting scheduled later for the day. Bharti Airtel share price plunged by more than 2.3% to intra-day low of Rs 315. The Bharti Airtel board is slated to meet today to finalise its mega fundraising plans as it seeks to reduce debt and financing costs,  and meet capital expenditure to fight the rising competition from Mukesh Ambani's Reliance Jio Infocomm. 

Also read: Airtel, Jio, Vodafone customers face huge call drop problem; check which one is worst of the three

The latest push by the Congress, after winning three assembly election, to give loan waivers to farmers has opened a Pandora’s box, with more states joining the bandwagon even as almost every economist and expert has denounced such a move as mere poll populism. Even State Bank of India (SBI) Chairman Rajnish Kumar has said that loan waivers are not a permanent solution and that it does not help farmers with the past or the future. In an interview with CNBC-TV18, the SBI chief said that governments can opt for something that focuses on helping farmers boost their productivity and thus, income.

Also read: Farmers’ woes: SBI Chairman Rajnish Kumar has this suggestion for Modi, Rahul Gandhi – it’s not loan waiver

After opening lower on Thursday morning, the domestic stock markets-- Sensex and Nifty-- extended losses after Federal Reserve rate hike spooked global markets. Sensex is trading 250 points down to 36,233.46, while the Nifty 50 is trading below 10,900-mark. Yes Bank share price gained by more than 4% after the firm announced that it has sold over 2% stake in Fortis Healthcare Ltd (FHL) in tranches. A look at Sensex live heatmap.

After a volatile 2018 for the stock markets given a confluence of domestic and global factors, even as investors move on to New Year 2019, analysts and experts say that the trend is likely to continue given the closely watched Lok Sabha Polls in the year. According to Credit Suisse, this trend is likely to continue given that as tightening of monetary policies globally will impact the country. “Global equities have seen price-to-earnings multiples rise steadily in the past several years – if the unwinding of quantitative easing and rising economic as well as geopolitical uncertainty brings down these multiples, it should show up in India as well,” Credit Suisse said in a note, adding that the premium of India’s valuation multiples to that of global equities is already near an eight-year high. We bring to you top bluechip bets of Credit Suisse for New Year 2019.

Read full story here: Three blue chip stock bets from Credit Suisse for a prosperous New Year 2019

Mukesh Ambani, Asia’s richest man, has made a prediction for India: Every new generation of Indians will live a better and more fulfilling life than those before. The MD and Chairman of Reliance Industries (RIL), who has fiercely advocated for the benefits of digital technology and the fourth industrial revolution, said that digital is the greatest friend of a democracy, which will help 1.3 billion Indians build a better future for themselves. “The goal can’t be achieved by any one person or one enterprise or by any one Indian. All 1.3 billion Indians will have to work together, to realise this in the shortest possible time,” Mukesh Ambani said at the Surging India Summit bropadcasted on the Republic channel.

Also read: Mukesh Ambani’s big prediction: Jio boss says Indians will have more fulfilling life; here’s how

Shares of private sector lender Yes Bank surged in trade on Thusday morning after the firm sold over 2% stake in Fortis Healthcare Ltd (FHL) in tranches. Yes Bank share price gained by more than 4.2% to Rs 187.15. “We would like to inform that Yes Bank has sold 1,23,37,323 equity shares having nominal value of ?10 each, constituting 2.13% of the paid-up share capital of FHL,” the lender said in a regulatory filing. The bank said the stake was sold in various tranches, last being on December 18, 2018, which resulted in change in holding of the bank by more than 2% of the total shareholding in FHL.

After opening over 250 points down, the 30-share Sensex was trading 166.63 points, or 0.46 per cent, lower at 36,317.70. The index had ended 137.25 points, or 0.38 per cent, at 36,484.33 Wednesday.The Fed's move came despite US President Donald Trump's attacks in recent weeks on its rate hikes and on Chairman Jerome Powell personally. The president had complained that the moves are threatening the economy. Benchmark indices fell sharply in early trade Thursday on weak global cues after the US Federal Reserve raised its key interest rate for the fourth time this year, and signalled more, but slower pace of rate hikes next year, PTI reported.

Rupee opened lower by 28 paise at 70.68 per US dollar on Thursday against 70.40 yesterday after the US Federal Reserve hiked rates. The Fed statement on Wednesday sounded “less dovish” than expected, traders told Reuters. The domestic currency closed at 70.39 on Wednesday. The bonds also fell as Fed rate hike fears continued to loom. The 10-year benchmark bond yield eased to 7.24 percent from previous close of 7.22 percent.

Also read: Rupee opens lower at 70.68 per US dollar, bond yields rise after Fed rate hike

Shares of India's largest auto-maker Maruti Suzuki tanked in trade on Thursday morning, after the firm announced a sales target cut for FY19. Maruti Suzuki share price slumped by more than 1.7% to Rs 7,800 on BSE this morning. After declining sales growth in the last five months despite festive season, India's largest carmaker Maruti Suzuki India said it would be unrealistic to expect a double digit growth in fiscal year (FY) 2018/19, something it had targeted at the start of the year in April."We registered double digit growth in the first half of the year but the third quarter has been tough. We are targeting flat sales in this quarter," R C Bhargava, chairman, said.

The domestic stock markets-- Sensex and Nifty--opened lower after the Federal Reserve rate hike spooked global markets. Sensex shed 270 points in the opening trade to 36,213.73, while the Nifty 50 was trading below 10,900-mark. Shares of India's major automaker Maruti Suzuki slumped by more than 1.7% to hit Rs 7,800, after the firm cut sales growth forecast 8%, and said that double digit sales growth in FY19 is unrealistic. Jet Airways shares gained more than 1%  ahead of its board meet today to discuss fund raising options.  A look at Sensex heat map.

Asian shares retreated on Thursday after the U.S. Federal Reserve raised rates, as expected, and kept most of its guidance for additional hikes next year, dashing investor hopes for a more dovish policy outlook. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.34 percent, with Australian shares dropping as much as 0.65 percent to two-year lows. Japan’s Nikkei shed 0.8 percent to nine-month lows.

Also read: Asian shares pull back after Fed’s signals for more rate hikes

Nifty extended the previous day gains with a Gap up. Despite muted global cues Indian equity market further pumped the gains as Crude oil dropped almost 10% in this week while the INR appreciated posting its biggest gains in the last couple of quarters. These were the most important triggers in the market. Further derivatives data pointed to a trending market ahead of expiry next week with Writers active at 10900 - 10800 while we have seen significant bias on the long side with higher built up seen in 11000 - 11100. All this points to a Santa rally for bulls. Though, we may see some profit booking which is due as the range for gains gets smaller an at that point in time it would be important to re-read this data. As with expiry next week and Muted volatility we would be gauging how the year ends. All in all, it is a dreamland for bulls with Crude below $50 and INR around $70.

The Federal Reserve raised its key interest rate Wednesday for the fourth time this year to reflect the U.S. economy’s continued strength but signaled that it expects to slow its rate hikes next year. Despite the forecast for fewer hikes, investors sent stocks plunging once Chairman Jerome Powell began a news conference, apparently disappointed that Powell didn’t go further to signal a slowdown in rate increases.

Also read: US Fed ignores Trump attacks, hikes rates for 4th time in 2018

Oil prices fell on Thursday to erase most of their gains from the day before, resuming declines seen earlier in the week amid worries about oversupply and the outlook for the global economy. The front-month U.S. crude contract had fallen 78 cents, or 1.6 percent, to $47.39 yuan per barrel by 0129 GMT, nearly offseting gains of 96 cents chalked up on Wednesday. International benchmark Brent crude futures were down 66 cents, or 1.2 percent, at $56.58 per barrel, after climbing almost 2 percent the session before.

Also read: Oil prices resume fall, shed most of their gains from last session

U.S. stocks declined sharply on Wednesday after the Federal Reserve’s forecast of fewer interest-rate increases in 2019 fell short of investors’ hopes of a more dovish monetary policy. The Dow Industrials closed at their lowest level since November 2017. The Dow Transports plunged 3.2 percent to confirm bear market territory, down nearly 21 percent from their record high on Sept. 14. The benchmark S&P 500 index is now down 14.5 percent from its record closing high on Sept. 20.

Also read: US STOCKS-Wall Street tumbles as investors fret over Fed policy update

The dollar was steady in Asian trade on Thursday, and was off its overnight lows after the Federal Reserve rowed back from a more aggressive policy tightening path even as it gave markets the impression of being much less cautious than they had anticipated. In a widely anticipated decision, the U.S. central bank hiked interest rates by 25 basis points and forecast fewer rate increases next year than it had at its September policy meeting. Yet markets were surprised by the Fed’s commitment to retain the core of its plan to tighten monetary policy, despite rising uncertainty about global economic growth, sending Wall Street stocks tumbling and depressing Asian equities.

Also read: US dollar steadies, off lows as Fed less cautious on policy